FileNet Stock Falls After Earnings Announcement
COSTA MESA — FileNet Corp. was punished by Wall Street on Wednesday, one day after disclosing that its second-quarter earnings would not meet analysts’ expectations.
The software company’s stock fell 28%, or $9.25 per share, to close at $23.75 per share in heavy trading on the Nasdaq market.
FileNet said Tuesday that its second-quarter results would fall short of analysts’ projections because of missed sales, as well as disruptions caused by recent acquisitions.
Executives at FileNet, which makes software used to manage electronically stored documents, said they weren’t surprised by investors’ apparent reaction to the disappointing news. The stock price “is in line with where we expected it to fall out,†said Mark St. Clare, chief financial officer. “I can’t say that anybody’s happy about the situation, but I’d say it’s a reasonably upbeat mood going forward.â€
FileNet said it expects second-quarter earnings of about $2.4 million, or 15 cents per share, short of analysts’ projections of a $6.4-million profit, or 39 cents per share. The company said it expects to report final second-quarter results on July 23.
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